Ivanhoe Apartments

  • Type: Multifamily
  • Size: 31 units
  • Location: Salem, OR
  • Year Built: 1966
  • Broker: Cliff Hockley & Jeremiah Wilgus
  • Sale Price: $1,740,000

The 31 unit Ivanhoe apartment complex in Salem, Oregon was identified by SVN advisors as a potential opportunity for a client seeking to place 1031 exchange funds and additional capital into an apartment building.  The client desired a property with a higher yield than what was available in the Portland metro area.  The property also included a vacant parcel for future development. Though the property was owned by a trust and had experienced minimal management over the past 25 years, it had significant potential for rent growth if professionally managed.  Salem area rents had recently experienced a 15% increase due to lack of inventory.  Yet poor record keeping and deferred maintenance presented a challenge.  The existing rents were too low to carry the appropriate loan balance and the physical inspection of the property revealed a number of defects.  The client was advised of the severity of each condition issue, and the estimated cost to cure.  Using this data as leverage, a final transaction price was negotiated which met the investment goals of the client.  Meanwhile, financial data was collected sufficient enough to help the bank underwrite the deal.  This pleased both the client and trustees, as the client was willing to pay more for the property than local investors.